The investment bank granted Dimon 1.5 million stock options on July 20 – at the average price of JPMorgan shares on Tuesday, according to a filing with the Securities and Exchange Commission. Today, it’s a prize worth over $ 220 million.
But here’s the catch: Dimon won’t be able to exercise the options. They will start to vest on July 20, 2026, and he is expected to hold the shares until July 20, 2031. By then, the shares could be worth a lot more, especially if there are a few years left like this. JPMorgan stock is up nearly 18% in 2021.
“This special award reflects the desire of the board of directors to see Mr. Dimon continue to lead the firm for a significant number of years to come,” the bank said in the filing. “In awarding the special award, the Board of Directors considered the importance of Mr. Dimon’s continued and long-term stewardship of the business, leadership continuity and succession planning. leadership in a highly competitive landscape for senior executives.
Dimon has been President and CEO of JPMorgan Chase since January 2006. JPMorgan has stated in the filing that the options are not part of Dimon’s compensation and will not be granted on a recurring basis.
During his tenure, Dimon led America’s largest bank through two recessions and avoided many of the blunders of his rivals, including Wells fargo (WFC), which has been caught up in a string of multi-year scandals. He became a spokesperson for the financial industry and immersed himself in politics, advocating for free and fair elections and equal opportunity for Americans of color. Yet Dimon has also sparked controversy, most recently when he said some unemployed Americans “don’t feel like going back to work.”
While these stock options could net Dimon a lot of money, the eventual windfall would only be a fraction of his overall net worth. Forbes estimates that Dimon has a fortune of around $ 1.8 billion.